Which elements must be created from the Covenant Management page for successful automated covenants testing?

For automated covenants testing to function correctly, it is essential to create specific elements on the Covenant Management page. The correct answer highlights the need for creating a Performance rule, Financial Statement Covenant, and Financial Indicator Covenant.

The Performance rule is critical because it establishes the baseline expectations for a borrower's performance metrics and ensures that these metrics are continuously monitored against pre-defined criteria. The Financial Statement Covenant is necessary as it requires borrowers to provide periodic financial statements, which are then analyzed to determine compliance with financial metrics or ratios. Additionally, the Financial Indicator Covenant supplements these requirements by tracking specific financial indicators that are vital to assessing the overall risk and performance of the loan.

Together, these three elements create a robust framework for automated covenants testing, allowing the system to perform necessary evaluations accurately and efficiently. This setup ensures that all aspects of the borrower's financial health are not just monitored but also compared against both historical performance and future obligations, leading to a comprehensive assessment of covenant compliance.